Over 3.2 million sq ft of office space was taken up in 2015 – up 28 percent from the previous year and 13 percent higher than the five year average. According to the latest figures from CBRE UK, the largest annual take-up increase occurred in the M25 South region, which improved dramatically from circa 404,000 sq ft in 2014 to circa 836,300 sq ft in 2015. Net supply remained unchanged across the South East from the end of the preceding year at around 12 million sq ft, 15 percent below the five year average. There was an increase in the proportion of Grade A supply in the market, and 34 percent of the total supply was either newly completed or under construction compared to 26 percent at the end of 2014. This was the result of take-up of Grade B space, loss of office space due to conversion to residential, and the delivery of new space.

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Competition for office space and investment assets in Paris remains strong, on the back of healthy economic growth, with GDP in the country expected to grow by 1.1 percent this year, and a further 1.4 percent in 2016, after three years of subdued growth. Following a relatively weak performance in the first quarter of 2015, office leasing in Île-de-France recovered in the third quarter, with annual take-up forecast to again exceed 2 million sq m.  Though demand remains high, rents have been left unaffected, further increasing the desirability of the market. Limited development will continue to restrict occupier activity – the development pipeline for the next two years has reduced, with much of the new stock likely to be pre-leased before completion. Heena Kerai, International Research Analyst at Knight Frank, commented: “Occupier and investor confidence will remain positive and despite stock limitations, we can expect both markets to put in a strong performance in the coming quarters.”